Many changes happen after your divorce, and one of the most significant changes is your living situation. Before the separation, you shared a home with your family and spouse. After the divorce, many people decide it is best to sell the marital home and find new homes though sometimes a spouse retains the house in the divorce. If this is the case for you, what should your next step be? This article will help you decide whether renting or buying a house after a divorce is your best option.
There are a few things to consider. One of the most significant considerations is the matrimonial home. How much equity do you have in the house? The financials from the marital home can have a substantial impact on the next move for you. For instance, if you sell your home, you have to deal with things like real estate fees and transfer tax. These costs can cut into any money for a down payment if you want to buy a new house.
Next, you have to consider your finances. You may have grown accustomed to having someone share the household expenses with you. Without that additional income, you may not be able to afford as much as you used to. You need to take a look at your new monthly budget to see what is reasonable for you to pay. If you received a lump sum payment from the divorce, it could be a wise idea to invest it into an annuity that pays you every month. These payments can help compensate for the loss of income. Another aspect of this is your credit score. Sometimes divorce can hurt your credit, mainly if there was much debt in the marriage or if you and your spouse had filed for bankruptcy. Your credit score will impact your ability to buy a home, especially if you are still on the mortgage of your marital home.
What do you need in a home? Are you just hurrying to get out and start your new life? Where do you want to live? These are all critical questions. If you are trying to get into a new place, it might be a better idea to rent a home before you find something more permanent. However, if you have kids to consider, finding something that accommodates them and is in a convenient location to them is very important.
Should you buy or rent a house after your divorce?
The answer depends on you, as every situation is unique. If you can comfortably afford a new home, buying can be an excellent option if you know where you want to live or have kids that you want to get settled in for stability reasons. However, you need to be able to afford the home and any expenses that may arise financially. Otherwise, renting a home will be the best choice for your specific situation. Take a close look at your needs and your finances to make this decision.
It is advisable for you to plan for this situation with your lawyer when you are in the process of getting a divorce.
If you have any additional questions or if you would like to discuss your matter with us further, feel free to call us at 905-366-0202 to arrange a free consultation. Alternatively, you can reach us via our website here.